U.S. patent application number 10/453557 was filed with the patent office on 2004-09-30 for system and method for betting on an event using an auction.
Invention is credited to Amaitis, Lee M., Asher, Joseph M., Burgis, Adam, Crosthwaite, Dominic.
Application Number | 20040192437 10/453557 |
Document ID | / |
Family ID | 32994507 |
Filed Date | 2004-09-30 |
United States Patent
Application |
20040192437 |
Kind Code |
A1 |
Amaitis, Lee M. ; et
al. |
September 30, 2004 |
System and method for betting on an event using an auction
Abstract
A method of managing bets comprises auctioning a first bet to
one of a plurality of clients for a first bet amount, wherein the
first bet comprises a bet that a first participant will finish in a
particular finishing position associated with an event. The method
further comprises auctioning a second bet to one of a plurality of
clients for a second bet amount, wherein the second bet comprises a
bet that a second participant will finish in the particular
finishing position associated with the event. The method continues
by adding the first bet amount and the second bet amount to form a
betting pool, and determining an amount of a payout based at least
in part on the betting pool.
Inventors: |
Amaitis, Lee M.; (London,
GB) ; Asher, Joseph M.; (New York, NY) ;
Burgis, Adam; (London, GB) ; Crosthwaite,
Dominic; (London, GB) |
Correspondence
Address: |
BAKER BOTTS L.L.P.
2001 ROSS AVENUE
SUITE 600
DALLAS
TX
75201-2980
US
|
Family ID: |
32994507 |
Appl. No.: |
10/453557 |
Filed: |
June 3, 2003 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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60459561 |
Mar 31, 2003 |
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Current U.S.
Class: |
463/26 |
Current CPC
Class: |
G07F 17/3288 20130101;
G06Q 50/34 20130101 |
Class at
Publication: |
463/026 |
International
Class: |
A63F 013/00 |
Claims
What is claimed is:
1. A method of managing bets, comprising: receiving a first bid
identifying a first bid amount and a first participant of a
plurality of participants in an event; receiving a second bid
identifying a second bid amount and the first participant; storing
a first bet associated with a first bet amount, wherein the first
bet comprises a bet that the first participant will finish in a
particular finishing position associated with the event and wherein
the first bet amount comprises the greater of the first bid amount
and the second bid amount; receiving a third bid identifying a
third bid amount and a second participant of the plurality of
participants in an event; receiving a fourth bid identifying a
fourth bid amount and the second participant; storing a second bet
associated with a second bet amount, wherein the second bet
comprises a bet that the second participant will finish in the
finishing particular position associated with the event and wherein
the second bet amount comprises the greater of the third bid amount
and the fourth bid amount; adding the first bet amount and the
second bet amount to form a betting pool; and determining an amount
of a payout based at least in part on the betting pool.
2. The method of claim 1, wherein: the first bid is associated with
a first client; the second bid is associated with a second client;
the first bid amount is greater than the second bid amount; and the
first bet is associated with the first client.
3. The method of claim 1, further comprising: receiving a fifth bid
identifying a fifth bid amount and a third participant of the
plurality of participants in an event; receiving a sixth bid
identifying a sixth bid amount and the third participant; and
storing a third bet associated with a third bet amount, wherein the
third bet comprises a bet that the third participant will finish in
the particular finishing position associated with the event and
wherein the third bet amount comprises the greater of the fifth bid
amount and the sixth bid amount; wherein adding comprising adding
the first bet amount with the second bet amount and the third bet
amount to form the betting pool.
4. The method of claim 1, wherein the finishing position associated
with the event comprises first place in the event.
5. The method of claim 2, further comprising: notifying the first
client and the second client that the first bet is associated with
the first client; receiving a fifth bid from the second client, the
fifth bid identifying the first participant and a fifth bid amount
greater than the first bid amount; and associating the first bet
with the second client such that the first bet amount comprises the
fifth bid amount.
6. The method of claim 1, further comprising: receiving a first
payment for the first bid amount from a first client; receiving a
second payment for the second bid amount from a second client;
determining that the first bid amount is greater than the second
bid amount such that the first bet is associated with the first
client; and refunding the second payment for the second bid amount
to the second client.
7. The method of claim 1, wherein the betting pool comprises a
first betting pool associated with the event and the payout
comprises a first payout associated with the event, the method
further comprising: generating a second betting pool associated
with the event based at least in part upon additional bids
associated with the first participant and the second participant;
and determining an amount of a second payout based at least in part
upon the second betting pool.
8. The method of claim 1, further comprising canceling the first
bet and the second bet if the betting pool does not exceed a
predetermined amount.
9. The method of claim 1, wherein at least one of the first bid,
the second bid, the third bid, and the fourth bid are received
using an online communication network.
10. A system for managing bets, comprising: a memory operable to
store: a first bid identifying a first bid amount and a first
participant of a plurality of participants in an event; a second
bid identifying a second bid amount and the first participant; a
first bet associated with a first bet amount, wherein the first bet
comprises a bet that the first participant will finish in a
particular finishing position associated with the event and wherein
the first bet amount comprises the greater of the first bid amount
and the second bid amount; a third bid identifying a third bid
amount and a second participant of the plurality of participants in
an event; a fourth bid identifying a fourth bid amount and the
second participant; and a second bet associated with a second bet
amount, wherein the second bet comprises a bet that the second
participant will finish in the finishing particular position
associated with the event and wherein the second bet amount
comprises the greater of the third bid amount and the fourth bid
amount; and a processor operable to: add the first bet amount and
the second bet amount to form a betting pool; and determine an
amount of a payout based at least in part on the betting pool.
11. The system of claim 10, wherein: the first bid is associated
with a first client; the second bid is associated with a second
client; the first bid amount is greater than the second bid amount;
and the first bet is associated with the first client.
12. The system of claim 10, wherein: the memory is further operable
to store: a fifth bid identifying a fifth bid amount and a third
participant of the plurality of participants in an event; a sixth
bid identifying a sixth bid amount and the third participant; and a
third bet associated with a third bet amount, wherein the third bet
comprises a bet that the third participant will finish in the
particular finishing position associated with the event and wherein
the third bet amount comprises the greater of the fifth bid amount
and the sixth bid amount; and the processor adds the first bet
amount with the second bet amount and the third bet amount to form
the betting pool.
13. The system of claim 10, wherein the finishing position
associated with the event comprises first place in the event.
14. The system of claim 11, wherein the processor is further
operable to: notify the first client and the second client that the
first bet is associated with the first client; receive a fifth bid
from the second client, the fifth bid identifying the first
participant and a fifth bid amount greater than the first bid
amount; and associate the first bet with the second client such
that the first bet amount comprises the fifth bid amount.
15. The system of claim 10, further comprising a clearinghouse
operable to: receive a first payment for the first bid amount from
a first client; receive a second payment for the second bid amount
from a second client; and refund the second payment for the second
bid amount to the second client if the first bid amount is greater
than the second bid amount.
16. The system of claim 10, wherein the betting pool comprises a
first betting pool associated with the event and the payout
comprises a first payout associated with the event, and wherein the
processor is further operable to: generate a second betting pool
associated with the event based at least in part upon additional
bids associated with the first participant and the second
participant; and determine an amount of a second payout based at
least in part upon the second betting pool.
17. The system of claim 10, wherein the processor cancels the first
bet and the second bet if the betting pool does not exceed a
predetermined amount.
18. The system of claim 10, wherein at least one of the first bid,
the second bid, the third bid, and the fourth bid are received by
the processor using an online communication network.
19. A method of managing bets, comprising: auctioning a first bet
to one of a plurality of clients for a first bet amount, wherein
the first bet comprises a bet that a first participant will finish
in a particular finishing position associated with an event;
auctioning a second bet to one of a plurality of clients for a
second bet amount, wherein the second bet comprises a bet that a
second participant will finish in the particular finishing position
associated with the event; adding the first bet amount and the
second bet amount to form a betting pool; and determining an amount
of a payout based at least in part on the betting pool.
20. The method of claim 19, wherein auctioning the first bet
comprises: receiving a first bid identifying a first bid amount and
the first participant; receiving a second bid identifying a second
bid amount and the first participant; associating the first bet
amount with the greater of the first bid amount and the second bid
amount.
21. The method of claim 20, wherein: the first bid is associated
with a first client; the second bid is associated with a second
client; the first bid amount is greater than the second bid amount;
and the first bet is associated with the first client.
22. The method of claim 19, further comprising auctioning a third
bet to one of a plurality of clients for a third bet amount wherein
the third bet comprises a bet that a third participant will finish
in the particular finishing position associated with the event,
wherein adding comprises adding the first bet amount with the
second bet amount and the third bet amount.
23. The method of claim 19, wherein the finishing position
associated with the event comprises first place in the event.
24. The method of claim 21, further comprising notifying the first
client and the second client that the first bet is associated with
the first client, wherein auctioning the first bet further
comprises receiving a third bid from the second client, the third
bid identifying the first participant and a third bid amount
greater than the first bid amount.
25. The method of claim 24, further comprising associating the
first bet with the second client such that the first bet amount
comprises the third bid amount.
26. The method of claim 20, wherein auctioning the first bet
further comprises: receiving a first payment for the first bid
amount from a first client; receiving a second payment for the
second bid amount from a second client; determining that the first
bid amount is greater than the second bid amount such that the
first bet is associated with the first client; and refunding the
second payment for the second bid amount to the second client.
27. The method of claim 19, wherein the betting pool comprises a
first betting pool associated with the event and the payout
comprises a first payout associated with the event, the method
further comprising: generating a second betting pool associated
with the event based at least in part upon additional bids
associated with the first participant and the second participant;
and determining an amount of a second payout based at least in part
upon the second betting pool.
28. The method of claim 19, further comprising canceling the first
bet and the second bet if the betting pool does not exceed a
predetermined amount.
29. The method of claim 20, wherein at least one of the first bid
and the second bid are received using an online communication
network.
Description
CROSS REFERENCE TO RELATED APPLICATION
[0001] This application is related to and claims the benefit of
U.S. Provisional Application No. 60/459,561 filed Mar. 31,
2003.
TECHNICAL FIELD OF THE INVENTION
[0002] This invention relates in general to betting on events and,
more particularly, to a system and method for betting on an event
using an auction.
BACKGROUND OF THE INVENTION
[0003] Wagering on sporting events, such as horse races, for
example, is a large and growing industry in many parts of the
world. Various types-of betting products or systems are available
for various types of sporting events For example, typical horse
racing bets allow bettors to bet on a single horse or on several
horses in a particular race or series of races. For instance, a
bettor can bet on a particular horse to finish first (win), finish
in the top two (place), or finish in the top three (show). A bettor
may also make various combination bets with multiple horses, such
as an exacta bet (covering the top two horses in order) or a
trifecta bet (covering the top three horses in order). In addition,
a bettor may bet on a series of races, such as the daily double
(winners of two consecutive races), the pick-three (winners of
three consecutive races), and the pick-six (winners of six
consecutive races), for example.
[0004] In a pari-mutuel betting system, all bets regarding a
particular event are aggregated, a commission (or "take-out") is
taken by the track, and the remainder is distributed among the
winning bettors. For example, pari-mutuel betting systems are
commonly used in North America (and other various places throughout
the world) for betting on horse races.
SUMMARY OF THE INVENTION
[0005] In one embodiment, a method for managing bets comprises
auctioning a first bet to one of a plurality of clients for a first
bet amount, wherein the first bet comprises a bet that a first
participant will finish in a particular finishing position
associated with an event. The method continues by auctioning a
second bet to one of a plurality of clients for a second bet
amount, wherein the second bet comprises a bet that a second
participant will finish in the particular finishing position
associated with the event. The method concludes by adding the first
bet amount and the second bet amount to form a betting pool, and by
determining an amount of a payout based at least in part on the
betting pool. Of course, the method could including auctioning any
suitable number of bets beyond the first bet and the second bet,
based upon the number of participants in an event, for example, and
adding those bet amounts to the first bet amount and the second bet
amount to form the betting pool.
[0006] In another embodiment, a system for managing bets comprises
a processor and a memory. The memory stores a first bid, a second
bid, and a first bet. The first bid identifies a first bid amount
and a first participant of a plurality of participants in an event.
The second bid identifies a second bid amount and the first
participant. The first bet is associated with a first bet amount
and comprises a bet that the first participant will finish in a
particular finishing position associated with the event. The first
bet amount comprises the greater of the first bid amount and the
second bid amount. The memory further stores a third bid, a fourth
bid, and a second bet. The third bid identifies a third bid amount
and a second participant of the plurality of participants in an
event. The fourth bid identifies a fourth bid amount and the second
participant. The second bet is associated with a second bet amount
and comprises a bet that the second participant will finish in the
finishing particular position associated with the event. The second
bet amount comprises the greater of the third bid amount and the
fourth bid amount. The processor adds the first bet amount and the
second bet amount to form a betting pool, and determines an amount
of a payout based at least in part on the betting pool.
[0007] In yet another embodiment, a method for managing bets
comprises receiving a first bid identifying a first bid amount and
a first participant of a plurality of participants in an event. The
method continues by receiving a second bid identifying a second bid
amount and the first participant. The method then continues by
storing a first bet associated with a first bet amount, wherein the
first bet comprises a bet that the first participant will finish in
a particular finishing position associated with the event and
wherein the first bet amount comprises the greater of the first bid
amount and the second bid amount. The method proceeds to receiving
a third bid identifying a third bid amount and a second participant
of the plurality of participants in an event, and receiving a
fourth bid identifying a fourth bid amount and the second
participant. The method then continues by storing a second bet
associated with a second bet amount, wherein the second bet
comprises a bet that the second participant will finish in the
finishing particular position associated with the event and wherein
the second bet amount comprises the greater of the third bid amount
and the fourth bid amount. The method concludes by adding the first
bet amount and the second bet amount to form a betting pool, and by
determining an amount of a payout based at least in part on the
betting pool.
[0008] Various embodiments of the present invention may benefit
from numerous advantages. It should be noted that one or more
embodiments may benefit from some, none, or all of the advantages
discussed below.
[0009] An advantage is that the auction process allows bettors to
bid on bets on particular outcomes of an event. In this way, a
bettor may win a large pool by betting a relatively small amount of
money on a longshot participant in the event. Other advantages will
be readily apparent to one having ordinary skill in the art from
the following figures, descriptions, and claims.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] For a more complete understanding of the present invention
and for further features and advantages, reference is now made to
the following description, taken in conjunction with the
accompanying drawings, in which:
[0011] FIG. 1 illustrates a system for auctioning, managing, and
paying bets in accordance with an embodiment of the present
invention;
[0012] FIG. 2 illustrates various equations for calculating the
potential payouts for the bets;
[0013] FIG. 3 illustrates a table depicting example bet data for
various bets; and
[0014] FIG. 4 is a flowchart illustrating an example method of
auctioning, managing, and paying bets in accordance with an
embodiment of the present invention.
DETAILED DESCRIPTION OF EXAMPLE EMBODIMENTS OF THE INVENTION
[0015] FIG. 1 illustrates an example system 10 for auctioning,
managing, and paying bets 12 in accordance with an embodiment of
the present invention. System 10 includes one or more betting
system interfaces 14 and a betting system platform 16 coupled by
one or more communication networks 18. In general, one or more
clients 20 may receive betting information (such as event times,
betting rules, betting options and odds, for example) and/or offer
bids 13 in an auction via betting system interfaces 14. Betting
system interfaces 14 communicate such bids 13 received from clients
20 to betting system platform 16. Betting system platform 16 stores
the received bids 13 and determines bets 12 based upon bids 13.
Platform 16 further determines and communicates appropriate odds
and payouts to one or more of the betting system interfaces 14.
[0016] System 10 auctions bets 12 on an event, such as, for
example, a race (e.g., horse race, dog race, auto race, etc.), a
tournament (e.g., golf tournament, basketball tournament, soccer
tournament, etc.), a game (e.g., football, baseball, basketball,
hockey, soccer, etc.), or any other suitable competitive event, to
the highest bidder for that bet 12. To bid, a client 20 posts the
entire bid amount 23 at the time the bid 13 is made. If the client
20 is subsequently outbid, the client 20 is notified so that client
20 can either obtain a refund for the bid amount 23, or, if the
auction is still open, post an additional bid amount 23 that will
make the client 20 the highest bidder for the particular bet 12.
The auction will close a predetermined amount of time before the
start of the event, such as two minutes before the post-time of a
horse race, in order to permit clients 20 who were outbid to make
traditional bets 12 prior to the event. Therefore, clients 20 may
check their bids 13 after the auction closes to confirm that they
were the highest bidder for a bet 12 on an event; or, if they were
not, to receive a refund of the bid amount 23. A bet 12 is
associated with the client 20 that was the highest bidder for the
bet 12 at the time the auction closed. The bet amount 22 is equal
to the bid amount 23 that won the auction for that bet 12.
[0017] For example, in a five-horse race, if a first client 20
offers a first bid 13 for a bet 12 that Horse #1 will win the race,
in the bid amount 23 of $200, and a second client 20 offers a
second bid 13 for the bet 12 that Horse #1 will win the race, in
the bid amount 23 of $500, then the first client 20 can either
obtain a refund of the $200 bid amount 23 or, if the auction
remains open, first client 20 can supplement the $200 in order to
the outbid the second client 20. Assuming the first client 20
obtains the refund or that the auction was closed such that a
supplemental bid 13 could not be made by first client 20, then
second client 20 wins the auction for the bet 12 that Horse #1 will
win the race. System 10 therefore accepts a bet 12 in a bet amount
22 of $500 from second client 20 that Horse #1 will win the race.
Similar auctions may be held for bets 12 that other participants in
the event, such as Horses #2-#5, will win the race. For example,
the highest bid amount 23 for the bet that Horse #2 will win the
race may be $200. The highest bid amount 23 for the bet that Horse
#3 will win the race may be $100. The highest bid amount 23 for the
bet that Horse #4 will win the race may be $300, and the highest
bid amount 23 for the bet that Horse #5 will win the race may be
$400. System 10 would therefore accept bets 12 in bet amounts 22
corresponding to the bid amounts 23 set forth above for Horses
#2-#5. System 10 adds the bet amounts 22 resulting from the set of
auctions described above regarding the winner of the race, to form
a betting pool 54. The resulting betting pool 54 for the set of
bets 12 described above may therefore be $1500 (minus any take-out
or commission charged by the track or wagering facility).
[0018] In some embodiments, system 10 holds more than one auction
for each event. For instance, an auction could be held every
several minutes leading up to the start of the event. For example,
when one auction closes, another auction could open. Alternatively,
or in addition, auctions could run simultaneously with different
closing times. Therefore, a separate betting pool 54 may be formed
for each corresponding auction or set of auctions. For example, a
second betting pool 54 in the amount of $2000 may be formed based
on the following highest bid amounts 23 for the bets 12 that the
stated horse will win the race: Horse #1-$400; Horse #2-$300; Horse
#3-$300; Horse #4-$500; and Horse #5-$500. System 10 would
therefore accept bets 12 in bet amounts 22 corresponding to the bid
amounts 23 set forth above for Horses #1-#5. Each bet 12 accepted
by system 10 is associated with the client 20 that made the
corresponding highest bid amount 23.
[0019] Additional auctions may be held for the event with respect
to bets 12 other than bets on the winner of an event. For example,
auctions may be held for bets 12 on which participant will finish
last in the event. Auctions may also be held for bets 12 on which
participants will beat a particular score or time in the event. In
this respect, auctions may be held for bets 12 on any number and
combination of participants in an event and any number and
combination of outcomes of the event, such as, for example, the
finishing positions in the event, the finishing times in the event,
the finishing scores in the event, etc.
[0020] The price a client 20 is willing to pay for a bet 12 on a
particular participant in an event will necessarily reflect that
participant's prospects of finishing with a desired outcome in the
event, such as winning the event, coupled with the amount of money
that could be won if the bet 12 is successful. System 10 may offer
a predetermined minimum size betting pool 54 for any given auction
or set of auctions. Therefore, in one embodiment, the track or
wagering facility would be responsible for paying the predetermined
minimum amount even if the betting pool 54 is less than this amount
when the auction or set of auctions closes. In an alternative
embodiment, if the betting pool 54 is less than the predetermined
minimum amount, then system 10 may theoretically cancel all bets 12
for that auction or set of auctions and refund the bet amounts 22
to the appropriate clients 20. For example, if the auctions for the
bets 12 on which participant will win the event does not yield some
predetermined minimum betting pool 54, then system 10 can cancel
all bets 12 associated therewith, and refund all bet amounts 22 and
bid amounts 23. In this regard, no single client 20 will have to
fear making a sizeable bid amount 23 early in the auction on the
basis that other clients 20 will not back other participants in the
event.
[0021] Betting system interfaces 14 may include any suitable
interface between a client 20 and betting system platform 16. For
example, as shown in FIG. 1, betting system interfaces 14 may
include physical interfaces, such as track interfaces 26 and/or
off-track interfaces 28. Track interfaces 26 are generally located
at a track, while off-track interfaces 28 are generally located at
an off-track-betting (OTB) establishment, such as an OTB parlor.
Track interfaces 26 and off-track interfaces 28 may include tellers
30, which may receive bids 13 from and distribute payouts to
clients 20, and/or monitors 32, which may be viewed by clients 20
to monitor betting information such as the event time, the current
odds, and the projected or actual payouts for various bets 12, for
example. In particular, system 10 may communicate betting
information such as, for example, the pari-mutuel odds (e.g., odds
on horses in a regular "win" betting pool); auction odds (e.g.,
odds on horses in an "auction" betting pool); the high bid on a
particular bet being auctioned (e.g., the current high bid on the
bet that Horse #3 will win the event); and total betting pools
(e.g., the "win" betting pool and/or the "auction" betting pool
54). Armed with this information, bettors may perform "odds
shopping" in order to make more informed decisions on whether to
bid on a bet that a particular participant will win the event or to
place a traditional "win" bet on that particular participant in
that event. In some situations, such information may be updated
substantially in real time or at preset intervals (such as every 30
seconds, for example) as new bets 12 are placed and/or as
information regarding the event changes, for example. In certain
situations, depending on the auction odds and the traditional
pari-mutuel odds being offered, a bettor may be able to perform
arbitrage betting such that the bettor places bets on each outcome
in such a manner that whatever the outcome, the bettor will make a
profit. Monitors 32 may include, for example, tote-boards or
closed-circuit televisions located at a track or OTB
establishment.
[0022] Track interfaces 26 and/or off-track interfaces 28 may also
include one or more self-service betting machines 33. In some
embodiment, self-service betting machines 33 allow clients 20 to
insert payment into the machine (such as cash or by using a voucher
or a credit or debit card), place one or more bets 12 and/or bids
13, and receive a printout (such as a ticket, for example)
indicating the bets 12 or bids 13 placed. Printouts for refunded
bids 13 and/or winning bets 12 may be inserted into the
self-service betting machine, such as to receive a payment voucher
(which may be used to receive a payout from a teller 30) or to
place additional bets 12. In other embodiments, self-service
betting machines 33 allow clients 20 to use a credit card, a debit
card, or a smart card to place bets 12. The credit or debit card
may have an associated account, which may be a betting account
provided and/or managed by a betting account provider using, for
example, a centralized computer system. The smart card may itself
store information regarding a betting account and various bets, or
may also be linked to a betting account using a centralized
computer system. In some embodiments, after the betting event is
completed, a client 20 may insert or swipe his or her credit,
debit, or smart card in the self-service betting machines 33 in
order to update the balance on the card. Self-service betting
machines 33 may also allow the client 20 to print out payment
vouchers which may be presented to a teller 30 in order to receive
payments.
[0023] As shown in FIG. 1, betting system interfaces 14 may also
include various non-physical interfaces, such as one or more
telephone operators 34 and one or more websites 36. Clients 20 may
access or communicate with such non-physical interfaces via one or
more communication networks 44. Communication networks 44 may
include one or more servers, routers, switches, repeaters,
backbones, links and/or any other appropriate type of communication
devices coupled by links such as wire line, optical, wireless, or
other appropriate links. In general, communication network 44 may
include any interconnection found on any communication network,
such as a telephone network, a local area network (LAN),
metropolitan area network (MAN), wide area network (WAN), the
Internet, portions of the Internet, or any other data exchange
system. To access betting system interface 14 using communication
networks 44, clients 20 may use a computer, a personal digital
assistant (pda), a cell-phone, a remote paging device, an
electronic mail communication device, a handheld betting device, or
any other suitable mobile device. In certain embodiments, clients
20 may receive any suitable information, such as betting
information, from betting system platform 16 via mobile devices
using, for example, communication networks 44 and betting system
interfaces 14. Clients 20 may also receive notification via a
mobile device that a bid 13 has been subsequently outbid. In this
way, a client 20 has the opportunity to place another bid 13 or, at
least, to collect a refund of the original bid 13.
[0024] Telephone operators 34 may communicate betting information
to, and take bets 12 and/or bids 13 from, clients 20. Similarly,
websites 36 may communicate betting information to clients 20 and
allow clients 20 to place bets 12 and/or bids 13. One or more of
such websites 36 may be hosted by one or more servers associated
with system 10, which server or servers may also host betting
system platform 16 in some embodiments. In some embodiments,
betting information available to clients 20 via websites 36 may be
updated substantially in real time or at preset intervals (such as
every 30 seconds, for example) as new bets 12 are placed and/or as
information regarding the event changes, for example.
[0025] In some embodiments, one or more websites 36 may be provided
by, or associated with, an Internet betting provider 46, for
example. Internet betting provider 46 may provide Internet account
wagering by providing online betting accounts to one or more
clients 20. Using an online betting account, a client 20 may
interface with one or more websites 36 associated with the Internet
betting provider 46 in order to fund the account, view betting
information regarding betting events, and place bets 12 and/or bids
13. Such online betting accounts may include one or more various
types of accounts, such as deposit accounts, credit accounts,
stop-loss accounts, and hybrid accounts, for example.
[0026] As discussed above, betting system platform 16 is operable
to receive bids 13 for bets 12 on an event from betting system
interfaces 14, determine the bets 12 based on the bids 13, store
the bets 12, determine appropriate odds and payouts, and
communicate such odds and payouts to one or more of the betting
system interfaces 14, which may then display such odds and/or
payouts to clients 20. As shown in FIG. 1, betting system platform
16 includes a processor 38 coupled to a memory 40. Processor 38 is
generally operable to execute various algorithms or calculations to
determine current bet data 50, such as bet amounts 52, betting
pools 54 and/or potential payout data 56.
[0027] As discussed above, betting system platform 16 comprises
processor 38 and memory 40. Processor 38 may comprise any suitable
processor that executes a betting system software application 42 or
other computer instructions, such as a central processing unit
(CPU) or other microprocessor, and may include any suitable number
of processors working together. Memory 40 may comprise one or more
memory devices suitable to facilitate execution of the computer
instructions, such as one or more random access memories (RAMs),
read-only memories (ROMs), dynamic random access memories (DRAMs),
fast cycle RAMs (FCRAMs), static RAM (SRAMs), field-programmable
gate arrays (FPGAs), erasable programmable read-only memories
(EPROMs), electrically erasable programmable read-only memories
(EEPROMs), microcontrollers, or microprocessors.
[0028] Memory 40 is generally operable to store various information
that may be used by processor 38 in determining odds and/or
payouts. For example, memory 40 may comprise any suitable number of
databases, which may be co-located or physically and/or
geographically distributed. In the example shown in FIG. 1, memory
40 may store any or all of the following: betting system software
application 42, current bet data 50, one or more event parameters
58, one or more bet parameters 60, one or more calculation rules
62, one or more event results 64, and one or more bet results
66.
[0029] Event parameters 58 may comprise various parameters of one
or more betting events, such as, for example, the type of event,
the time, date and location of the event and/or the number (or in
some cases, the name) of each of the participants in the event. Bet
parameters 60 may comprise various parameters of one or more
received bets 12, such as the identity of the client 20 who placed
the bet 12, the manner in which the bet 12 was placed (such as via
telephone, the Internet, or in person at a track or OTB
establishment, for example), the type of bet 12, the commission
rate on the bet 12, the participant or participants covered by the
bet 12 and/or the amount of the bet 12, for example. Calculation
rules 62 may comprise various equations or other algorithms to be
used by processor 38 in determining various current bet data 50.
Examples of such equations are illustrated and discussed below with
reference to equations 100-110 of FIG. 2. Event results 64 may
comprise various data regarding the results of one or more betting
events, such as the final position of each participant in an event,
the finishing score or time of a participant in the event, whether
there was a tie for any position and/or whether any participants
did not finish the event, for example. Bet results 66 may comprise
various data regarding the results of various bets 12, such as the
identity of the client 20 who placed the bet 12, whether the bet 12
was a winning bet, the determined payout for the bet 12 and/or
whether the payout was distributed to the client 20, for
example.
[0030] As discussed above, one or more communication networks 18
couple and facilitate wireless or wireline communication between
one or more betting system interfaces 14 and betting system
platform 16. Each communication network 18 may include one or more
servers, routers, switches, repeaters, backbones, links and/or any
other appropriate type of communication devices coupled by links
such as wire line, optical, wireless, or other appropriate links.
In general, each communication network 18 may include any
interconnection found on any communication network, such as a local
area network (LAN), metropolitan area network (MAN), wide area
network (WAN), the Internet, portions of the Internet, or any other
data exchange system.
[0031] As discussed above, processor 38 is operable to execute
betting system software application 42 to determine current bet
data 50, such as bet amounts 52, betting pools 54 and/or potential
payout data 56. Processor 38 may determine such current bet data 50
based at least on data received from memory 40 and/or one or more
betting system interfaces 14. In addition, processor 38 may update
such current bet data 50 based on new information being received by
betting system platform 16. In some embodiments, processor 38 may
update current bet data 50 in real time, substantially in real
time, or at preset intervals (such as every 30 seconds, for
example).
[0032] As shown in FIG. 1, current bet data 50 may be communicated
to one or more betting system interfaces 14 via communication
network 18, as indicated by arrow 70. Current bet data 50 may then
be made available to clients 20, such as via tote boards or
monitors 32 located at a track or OTB establishment, for example,
or on an appropriate website 36 that may be accessed by clients 20,
for example. In this manner, clients 20 may have access to
real-time or substantially real-time current bet data 50 regarding
various betting events.
[0033] As discussed above, processor 38 may calculate various
current bet data 50 using various algorithms or equations. FIG. 2
illustrates examples of such algorithms or equations in accordance
with one embodiment of the present invention. In particular, FIG. 2
illustrates various equations for calculating the current potential
payout 56 for each bet 12, associated with a particular betting
event. In particular, FIG. 2 illustrates a Betting Pool equation
100, a Take-Out equation 102, a Bet Payout (after Take-Out)
equation 104, a Bet Payout Per Dollar (after Take-Out) equation
106, a Bet Payout (without Take-Out) equation 108, and a Bet Payout
Per Dollar (without Take-Out) equation 110. The equations shown in
FIG. 2 are best understood when viewed in conjunction with FIG.
3.
[0034] FIG. 3 illustrates a table 150 comprising example bids 13
and bid amounts 23 in auctions for bets 12 that particular
participants will win an event. For example, each row 152 of table
150 identifies a particular client 20 making bids 13, the bid
amount 23 of each bid 13, and the particular bets 12 being
auctioned on which the bids 13 are made. Each column 154 of table
150 is associated with a particular bet 12 that a particular
participant will win the event, and identifies the various bids 13
and bid amounts 23 made by clients 20 in the auction for that bet
12. For example, system 10 holds a separate auction for each of the
five bets 12 represented by columns 154a-e. The winner of each
auction is the client 20 that has the highest bid amount 23 at the
close of that auction. System 10 accepts a bet 12 associated with
the client 20 that wins a given auction. The bet amount 22 of each
bet 12 is therefore the bid amount 23 that was the highest bid 13
in the given auction. A betting pool 54 is formed by adding each of
the determined bet amounts 22 from each of the auctions
corresponding to the five bets 12 represented by columns
154a-e.
[0035] For example, column 154a represents a bet 12 that
Participant #1 will win the event. Row 152a indicates that client
20 #1 has offered a bid 13 in a bid amount 23 of $200 for bet 12 of
column 154a. Row 152b indicates that client 20 #2 has offered a bid
13 in a bid amount 23 of $500 for bet 12 of column 154a. The
remaining rows 152 of table 150 indicate that no other clients 20
have submitted bids 13 on the bet 12 of column 154a, and that
client 20 #1 has not countered the bid 13 of client 20 #2.
Therefore, client 20 #2 wins the auction for the bet 12 that
Participant #1 will win the event. System 10 therefore accepts a
bet 12 that Participant #1 will win the event and associates this
bet 12 with client 20 #2. The bet amount 22 of this bet 12 is $500
(as indicated in bold in FIG. 3), which is added to the betting
pool 54 for the set of bets 12 regarding which participant will win
the event. The betting pool 54 is therefore $500.
[0036] Column 154b represents a bet 12 that Participant #2 will win
the event. Row 152b indicates that client 20 #2 has offered a bid
13 in a bid amount 23 of $100 for bet 12 of column 154b. Row 152c
indicates that client 20 #1 has offered a bid 13 in a bid amount 23
of $150 for bet 12 of column 154b. Row 152e indicates that client
20 #2 has countered the bid 13 of client 20 #1 with a bid 13 in a
bid amount 23 of $200. The remaining rows 152 of table 150 indicate
that no other clients 20 have offered a bid 13 on the bet 12 of
column 154b, and that client 20 #1 has not countered the bid 13 of
client 20 #2. Therefore, client 20 #2 wins the auction for the bet
12 that Participant #2 will win the event. System 10 therefore
accepts a bet 12 that Participant #2 will win the event and
associates this bet 12 with client 20 #2. The bet amount 22 of this
bet 12 is $200 (as indicated in bold in FIG. 3), which is added to
the betting pool 54 for the set of bets 12 regarding which
participant will win the event. The betting pool 54 is therefore
$700.
[0037] Column 154c represents a bet 12 that Participant #3 will win
the event. Row 152c indicates that client 20 #1 has offered a bid
13 in a bid amount 23 of $50 for bet 12 of column 154c. Row 152d
indicates that client 20 #3 has offered a bid 13 in a bid amount 23
of $100 for bet 12 of column 154c. The remaining rows 152 of table
150 indicate that no other clients 20 have submitted bids 13 on the
bet 12 of column 154c, and that client 20 #1 has not countered bid
13 made by client 20 #3. Therefore, client 20 #3 wins the auction
for the bet 12 that Participant #3 will win the event. System 10
therefore accepts a bet 12 that Participant #3 will win the event
and associates this bet 12 with client 20 #3. The bet amount 22 of
this bet 12 is $100 (as indicated in bold in FIG. 3), which is
added to the betting pool 54 for the set of bets 12 regarding which
participant will win the event. The betting pool 54 is therefore
$800.
[0038] Column 154d represents a bet 12 that Participant #4 will win
the event. Row 152a indicates that client 20 #1 has offered a bid
13 in a bid amount 23 of $100 for bet 12 of column 154d. Row 152f
indicates that client 20 #4 has offered a bid 13 in a bid amount 23
of $300 for bet 12 of column 154d. The remaining rows 152 of table
150 indicate that no other clients 20 have submitted bids 13 on the
bet 12 of column 154d, and that client 20 #1 has not countered bid
13 made by client 20 #4. Therefore, client 20 #4 wins the auction
for the bet 12 that Participant #4 will win the event. System 10
therefore accepts a bet 12 that Participant #4 will win the event
and associates this bet 12 with client 20 #4. The bet amount 22 of
this bet 12 is $300 (as indicated in bold in FIG. 3), which is
added to the betting pool 54 for the set of bets 12 regarding which
participant will win the event. The betting pool 54 is therefore
$1,100.
[0039] Column 154e represents a bet 12 that Participant #5 will win
the event. Row 152a indicates that client 20 #1 has offered a bid
13 in a bid amount 23 of $300 for bet 12 of column 154e. Row 152f
indicates that client 20 #4 has offered a bid 13 in a bid amount 23
of $350 for bet 12 of column 154e. Row 152g indicates that client
20 #5 has offered a bid 13 in a bid amount 23 of $400 for bet 12 of
column 154e. The remaining rows 152 of table 150 indicate that no
other clients 20 have submitted bids 13 on the bet 12 of column
154e, and that neither client 20 #1 nor client 20 #4 has countered
bid 13 made by client 20 #5. Therefore, client 20 #5 wins the
auction for the bet 12 that Participant #5 will win the event.
System 10 therefore accepts a bet 12 that Participant #5 will win
the event and associates this bet 12 with client 20 #5. The bet
amount 22 of this bet 12 is $400 (as indicated in bold in FIG. 3),
which is added to the betting pool 54 for the set of bets 12
regarding which participant will win the event. The final betting
pool 54 is therefore $1,500.
[0040] The take-out for this betting pool 54 may be calculated to
be $225 using equation 102 if we assume a 15% commission rate, for
example. The payout for the bets 12 after take-out can be
calculated to be $1,500-$225=$1,275 using equation 104. Of course,
without take-out, the payout for the bets 12 is calculated to be
$1,500 using equation 108.
[0041] The payout per dollar for the bets 12 after take-out can be
calculated using equation 106 to be the following amounts based on
the winning participant of the event:
[0042] Participant #1 wins event --$1,275/$500=$2.55
[0043] Participant #2 wins event --$1,275/$200=$6.37
[0044] Participant #3 wins event --$1,275/$100=$12.75
[0045] Participant #4 wins event $1,275/$300=$4.25
[0046] Participant #5 wins event $1,275/$400=$3.18
[0047] The payout per dollar for the bets 12 without take-out can
be calculated using equation 110 to be the following amounts based
on the winning participant of the event:
[0048] Participant #1 wins event --$1,500/$500=$3.00
[0049] Participant #2 wins event --$1,500/$200=$7.50
[0050] Participant #3 wins event --$1,500/$100=$15.00
[0051] Participant #4 wins event --$1,500/$300=$5.00
[0052] Participant #5 wins event --$1,500/$400=$3.75
[0053] FIG. 4 is a flowchart illustrating an example method of
auctioning, managing, and paying bets 12 in accordance with an
embodiment of the present invention. System 10 auctions a first bet
12 to one of a plurality of clients 20 for a bet amount 22 at steps
200. System 10 auctions an Nth bet 12 to one of the clients 20 for
a bet amount 22 at steps 210. System 10 could auction other bets 12
to other clients 20 as indicated by the ellipses between steps 200
and 210. In some situations, steps 200 and 210 may occur
simultaneously, or may at least partially overlap. The bets 12
associated with steps 200 and 210 are related and comprise bets 12
regarding a particular outcome of an event. For example, the bets
12 could be based upon the winner of a five horse race. Therefore,
the bet 12 of steps 200 could be a bet 12 that Horse #1 will win a
particular horse race. The bet 12 of steps 210 could be a bet 12
that Horse #5 will win the horse race. The bets 12 indicated by the
ellipses between steps 200 and 210 could be bets 12 that Horses
#2-#4 will win the horse race.
[0054] Referring to steps 200, system 10 receives a bid 13 on the
bet 12 that Horse #1 will win the horse race at step 202. At step
204, system 10 determines whether the bid 13 received at step 202
is the highest bid amount 23 among the rest of the bids 13 received
in steps 200. If not, bid 13 is rejected at step 205 and execution
proceeds to step 226 where system 10 determines whether the auction
for the bet 12 that Horse #1 will win the horse race has closed. If
the auction has not closed, additional bids 13 may be received by
system 10. If the bid 13 received at step 202 is the highest bid
amount 23, as determined at step 204, then execution proceeds to
step 206 where system 10 determines bet 12 and bet amount 22 based
upon the bid 13 received at step 202. In particular, system 10
associates bet 12 with the client 20 that placed the bid 13
received at step 202, and the bet amount 22 equals the bid amount
23 of the bid 13.
[0055] Referring to steps 210, system 10 receives a bid 13 on the
bet 12 that Horse #5 will win the horse race at step 212. At step
214, system 10 determines whether the bid 13 received at step 212
is the highest bid amount 23 among the rest of the bids 13 received
in steps 210. If not, bid 13 is rejected at step 215 and execution
proceeds to step 226 where system 10 determines whether the auction
for the bet 12 that Horse #5 will win the horse race has closed. If
the auction has not closed, additional bids 13 may be received by
system 10. If the bid 13 received at step 212 is the highest bid
amount 23, as determined at step 214, then execution proceeds to
step 216 where system 10 determines bet 12 and bet amount 22 based
upon the bid 13 received at step 212. In particular, system 10
associates bet 12 with the client 20 that placed the bid 13
received at step 212, and the bet amount 22 equals the bid amount
23 of the bid 13.
[0056] System 10 may determine bets 12 and bet amounts 22 for the
remaining Horses #2-#4 as indicated by the ellipses between steps
200 and 210. Execution proceeds to step 218 where system 10 stores
the bets 12 determined above. System 10 determines betting pool 54
based upon the bet amounts 22 determined above, at step 220. At
step 222, system 10 determines the take-out based upon a suitable
commission rate and the betting pool determined at step 220. System
10 determines payouts at step 224 using, for example, the equations
from FIG. 2.
[0057] System 10 determines whether the auctions of steps 200 and
210 have closed at step 226. If not, execution returns to steps 200
and 210 where system 10 may receive additional bids 13 for
corresponding bets on the event. If the auctions have closed, then
execution proceeds to step 228 where system 10 determines whether
any of the participants in the event will not be competing in the
event, such as if a participant is scratched, withdrawn, or becomes
a non-runner, for example. For example, betting system platform 16
may receive a notification that one or more of the participants has
been withdrawn from the event prior to the start of the event. If
it is determined at step 228 that one or more participants will not
be competing in the event, execution proceeds to step 230 where the
appropriate bets 12 are canceled. From here, execution returns to
step 220 where the betting pool 220 is updated to reflect the
canceled bets 12. In certain circumstances, a particular betting
pool 54 may be terminated and the bet amounts 22 associated with
that betting pool 54 may be refunded to clients 20. Otherwise, the
method proceeds to step 232 where the results of the event are
received, such as the final position of each participant in the
event and whether there was a tie for any position, for example. At
step 234, the payouts are paid to clients 20 who made successful
bets 12. The method terminates at step 236.
[0058] Although embodiments of the invention and their advantages
are described in detail, a person skilled in the art could make
various alterations, additions, and omissions without departing
from the spirit and scope of the present invention as defined by
the appended claims.
* * * * *